IDEAS home Printed from https://ideas.repec.org/a/wly/mgtdec/v29y2008i5p425-441.html
   My bibliography  Save this article

Below the tip of the iceberg: the co-evolution of formal and informal interorganizational relations in the wireless telecommunications industry

Author

Listed:
  • Lori Rosenkopf

    (The Wharton School of the University of Pennsylvania, Philadelphia, PA, USA)

  • Thomas Schleicher

    (TNS Infratest, München, Germany)

Abstract

We examine how alliances-formal, contractual interorganizational relations-co-evolve with emergent, informal interorganizational relations. To form alliances, firms must acquire information on potential partners, and the acquisition of this intelligence occurs through both formal and informal channels. Here we evaluate the effects of two of these informal channels: joint participation in cooperative technical organizations (CTOs) and director interlocks. Since director interlocks connect firms through the highest managerial levels while joint CTO participation connects firms through mid-level technical personnel, we examine whether each type of informal tie contributes to alliance formation as well as whether ties at multiple levels serve as complements or substitutes for this purpose. We also examine whether all types of ties-alliances, interlocks and CTO participation-co-evolve endogenously or whether there are more direct causal relationships between and among these various types of networks. We find that both interlocks and CTO participation facilitate alliance formation, yet interlocks only facilitate alliance formation when the common director serves as an officer in one of the firms. An additional distinction between the role of interlocks and CTO participation is that the relationship between interlocks and alliance formation appears endogenous, in contrast to CTO participation, which causally precedes alliance formation. Copyright © 2008 John Wiley & Sons, Ltd.

Suggested Citation

  • Lori Rosenkopf & Thomas Schleicher, 2008. "Below the tip of the iceberg: the co-evolution of formal and informal interorganizational relations in the wireless telecommunications industry," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 29(5), pages 425-441.
    • Handle: RePEc:wly:mgtdec:v:29:y:2008:i:5:p:425-441
    DOI: 10.1002/mde.1403
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1002/mde.1403
    File Function: Link to full text; subscription required
    Download Restriction: no
    File URL: https://libkey.io/10.1002/mde.1403?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ranjay Gulati, 1999. "Network location and learning: the influence of network resources and firm capabilities on alliance formation," Strategic Management Journal, Wiley Blackwell, vol. 20(5), pages 397-420, May.
    2. Rosenkopf, Lori & Tushman, Michael L, 1998. "The Coevolution of Community Networks and Technology: Lessons from the Flight Simulation Industry," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 7(2), pages 311-346, June.
    3. Kathleen M. Eisenhardt & Claudia Bird Schoonhoven, 1996. "Resource-based View of Strategic Alliance Formation: Strategic and Social Effects in Entrepreneurial Firms," Organization Science, INFORMS, vol. 7(2), pages 136-150, April.
    4. Allan Afuah, 2000. "How much do your co‐opetitors' capabilities matter in the face of technological change?," Strategic Management Journal, Wiley Blackwell, vol. 21(3), pages 397-404, March.
    5. Gordon Walker & Bruce Kogut & Weijian Shan, 1997. "Social Capital, Structural Holes and the Formation of an Industry Network," Organization Science, INFORMS, vol. 8(2), pages 109-125, April.
    6. Hausman, Jerry & Hall, Bronwyn H & Griliches, Zvi, 1984. "Econometric Models for Count Data with an Application to the Patents-R&D Relationship," Econometrica, Econometric Society, vol. 52(4), pages 909-938, July.
    7. Gautam Ahuja & Curba Morris Lampert, 2001. "Entrepreneurship in the large corporation: a longitudinal study of how established firms create breakthrough inventions," Strategic Management Journal, Wiley Blackwell, vol. 22(6‐7), pages 521-543, June.
    8. John Hagedoorn & Jos Schakenraad, 1994. "The effect of strategic technology alliances on company performance," Strategic Management Journal, Wiley Blackwell, vol. 15(4), pages 291-309, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Julia Brennecke & Irena Schierjott & Olaf Rank, 2016. "Informal Managerial Networks and Formal Firm Alliances," Schmalenbach Business Review, Springer;Schmalenbach-Gesellschaft, vol. 17(1), pages 103-125, April.
    2. Kim, Dennie & Funk, Russell & Zaheer, Aks, 2020. "Structure in Context: A Morphological View of Whole Network Performance," SocArXiv x6q7g, Center for Open Science.
    3. Anupama Phene & Stephen Tallman, 2014. "Knowledge Spillovers and Alliance Formation," Journal of Management Studies, Wiley Blackwell, vol. 51(7), pages 1058-1090, November.
    4. Haifeng Wang & Longwei Tian & Yuan Li, 2019. "A tale of two cultures: Social networks and competitive advantage," Asia Pacific Journal of Management, Springer, vol. 36(2), pages 321-347, June.
    5. Olga A. Novoselova, 2022. "What matters for interorganizational connectedness? Locating the drivers of multiplex corporate networks," Strategic Management Journal, Wiley Blackwell, vol. 43(4), pages 872-899, April.
    6. Shiu, Jing-Ming & Dallas, Mark P. & Huang, Hui-Hsuan, 2023. "A friend of a friend? Informal authority, social capital, and networks in telecommunications standard-setting organizations," Technological Forecasting and Social Change, Elsevier, vol. 189(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Vanhaverbeke, W.P.M. & Beerkens, B.E. & Duysters, G.M., 2003. "Explorative and exploitative learning strategies in technology-based alliance networks," Working Papers 03.22, Eindhoven Center for Innovation Studies.
    2. Devarakonda, Ramakrishna & Reuer, Jeffrey J. & Tadikonda, Harsha, 2022. "Founder social capital and value appropriation in R&D alliance agreements," Research Policy, Elsevier, vol. 51(4).
    3. Wim Vanhaverbeke & Victor Gilsing & Bonnie Beerkens & Geert Duysters, 2009. "The Role of Alliance Network Redundancy in the Creation of Core and Non‐core Technologies," Journal of Management Studies, Wiley Blackwell, vol. 46(2), pages 215-244, March.
    4. Duysters, Geert & Vanhaverbeke, Wim & Beerkens, Bonnie & Gilsing, Victor, 2007. "Exploration and Exploitation in Technology-based Alliance Networks," MERIT Working Papers 2007-020, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    5. Lori Rosenkopf & Paul Almeida, 2003. "Overcoming Local Search Through Alliances and Mobility," Management Science, INFORMS, vol. 49(6), pages 751-766, June.
    6. Colombo, Massimo G. & Grilli, Luca & Piva, Evila, 2006. "In search of complementary assets: The determinants of alliance formation of high-tech start-ups," Research Policy, Elsevier, vol. 35(8), pages 1166-1199, October.
    7. Soh, Pek-Hooi, 2003. "The role of networking alliances in information acquisition and its implications for new product performance," Journal of Business Venturing, Elsevier, vol. 18(6), pages 727-744, November.
    8. Dittrich, K. & Duysters, G.M. & de Man, A-P., 2004. "Using Networks For Changing Innovation Strategy: The Case of IBM," ERIM Report Series Research in Management ERS-2004-111-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    9. Dittrich, Koen & Duysters, Geert & de Man, Ard-Pieter, 2007. "Strategic repositioning by means of alliance networks: The case of IBM," Research Policy, Elsevier, vol. 36(10), pages 1496-1511, December.
    10. Jason Owen-Smith & Walter W. Powell, 2004. "Knowledge Networks as Channels and Conduits: The Effects of Spillovers in the Boston Biotechnology Community," Organization Science, INFORMS, vol. 15(1), pages 5-21, February.
    11. Gilsing, Victor A. & Cloodt, Myriam & Bertrand–Cloodt, Danielle, 2016. "What makes you more central? Antecedents of changes in betweenness-centrality in technology-based alliance networks," Technological Forecasting and Social Change, Elsevier, vol. 111(C), pages 209-221.
    12. Qin Yang, 2018. "Geographical Diversity of Alliance Portfolio and Firm Innovation: The Roles of Resource Characteristics and Governance Structures," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 15(06), pages 1-22, December.
    13. Wilfried Zidorn & Marcus Wagner, 2012. "Too Much of a Good Thing: The Role of Alliance Portfolio Diversity for Innovation Output in the Biotechnology Industry," DRUID Working Papers 12-10, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    14. Ana Villar & César Camisón & Montserrat Boronat, 2007. "Technical Strategic Alliances And Performance: The Mediating Effect Of Knowledge ¿Based Competencies," Working Papers. Serie EC 2007-11, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    15. Gilsing, Victor & Nooteboom, Bart & Vanhaverbeke, Wim & Duysters, Geert & van den Oord, Ad, 2008. "Network embeddedness and the exploration of novel technologies: Technological distance, betweenness centrality and density," Research Policy, Elsevier, vol. 37(10), pages 1717-1731, December.
    16. Feng Zhang & Guohua Jiang, 2019. "Combination of Complementary Technological Knowledge to Generate “Hard to Imitate” Technologies," Journal of Information & Knowledge Management (JIKM), World Scientific Publishing Co. Pte. Ltd., vol. 18(02), pages 1-24, June.
    17. Milanov, Hana & Fernhaber, Stephanie A., 2009. "The impact of early imprinting on the evolution of new venture networks," Journal of Business Venturing, Elsevier, vol. 24(1), pages 46-61, January.
    18. Park, Gunno & Kim, Marco JinHwan & Kang, Jina, 2015. "Competitive embeddedness: The impact of competitive relations among a firm's current alliance partners on its new alliance formations," International Business Review, Elsevier, vol. 24(2), pages 196-208.
    19. Frank T. Rothaermel & Andrew M. Hess, 2007. "Building Dynamic Capabilities: Innovation Driven by Individual-, Firm-, and Network-Level Effects," Organization Science, INFORMS, vol. 18(6), pages 898-921, December.
    20. Elia, Stefano & Messeni Petruzzelli, Antonio & Piscitello, Lucia, 2019. "The impact of cultural diversity on innovation performance of MNC subsidiaries in strategic alliances," Journal of Business Research, Elsevier, vol. 98(C), pages 204-213.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:mgtdec:v:29:y:2008:i:5:p:425-441. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www3.interscience.wiley.com/cgi-bin/jhome/7976 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.